FP Bancorp Racks Up a Strong Half In Rebound from S. California Slump

Southern California's FP Bancorp, bolstered by recovering asset quality and improved efficiency, saw its earnings for the first half of the year skyrocket 737%.

In the second quarter, FP's 1.43% return on assets catapulted it into position as one of the best-performing banks in Southern California. Few community banks have recovered from the region's slump so dramatically.

Second-quarter earnings for the $218 million-asset holding company, which owns Escondido-based First Pacific National Bank, shoBt up 571% to $745,000. Year-to-date earnings were $1.03 million, compared to $123,000 in the year earlier period.

Nonperforming assets fell to 4.06% of total assets on June 30, from 4.87% at mid-1994. Loan losses during the first six months of the year totaled $2.8 million, 7.2% less than a year earlier.

FP's management chalked up the rebound to a two-year plan to attack problem assets and reduce costs.

"We significantly reduced our expenses by closing several unprofitable branches and departments and by consolidating a number of our operations," said Harvey L. Williamson, chief executive. "The successful merger of Overland Bank into First Pacific National Bank during the quarter further improved our efficiencies and expanded our presence in southern Riverside County."

First Pacific National Bank operates in northern San Diego and southern Riverside counties.

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